Evidence shows that significant cost reductions normally occur through exploiting new technologies, processes and business practices. However, most organisations focus the majority of their resources into maintaining and improving their current business model and related support infrastructure. In such circumstances, opportunities will always exist to reduce costs and accelerate strategic initiatives, the key challenge is to optimise resources productivity and establish an effective mechanism to identify and exploit strategic opportunities. This course will explain ways to deliver cost optimisation and reprioritise resources towards strategic objectives. The primary objective of this interactive course is to provide practical skills, techniques and greater confidence to enable you to plan, manage and deliver strategic cost optimization programmed.
Costs and volume
The movement of costs and the break-even point.
Direct costs and overheads
Overhead apportionment
Cost centers
Cost data collection
Why costs change
Marginal costs
Standard costs and budgets
Variance analysis and the use of standard
Cost or usage
Cost reduction campaigns
Action commitment
Assess the variability of costs from past performance, and to prepare estimates of future performance; - to distinguish between direct costs and "overheads",
Select appropriate methods of allocating overhead costs to different activities;
Determine appropriate cost centers within their co-operative societies, and to identify the appropriate ways of measuring their outputs;
Design and operate systems for collecting the data necessary for a cost accounting system
Distinguish between changes in costs which are caused by volume, efficiency and by price and to suggest appropriate remedies when necessary;
Determine standard costs; - to identify the causes of variances from standard costs, and to suggest appropriate changes when necessary.
Adopt appropriate strategies for cost reduction, and to avoid inefficient approaches to the problem of excess costs
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